Are you thinking about downsizing but don’t know how to make the tricky transition work? How do you buy a new place before you sell your current home?
You are not alone as many home owners have the same concerns. They want to embrace a new lifestyle, take advantage of our ever-increasing values, and lock in a smaller home or condo in an area that they covet.
Below are some creative solutions that may help you make your dreams come true too. Keep in mind that everyone’s financial profile is different. One option might not work for you while another one will. It might even be a combination of a few of these.
Here are a few ideas:
HELOC – Home Equity Line of Credit. If you have enough equity in your current home, you may be able to get a HELOC to get a down payment for a conventional loan or to buy the new property outright.
Bridge Loan – These loans can bridge the gap between buying and selling. You can typically borrow up to 65% of the equity in your home with a maximum loan of $500,000.
Margin Loan – most individuals can borrow up to 50% of the balance in their liquid investment accounts (retirement accounts cannot be used). These loans are generally cheaper than a bridge loan and have no major tax implications.
IRA Rollover – Most retirement funds allow a 60 day rollover of funds. It’s very important to know that these funds must be replaced into the retirement account within 60 days or you may incur significant penalties and taxes.
Making a move, whether you are buying a larger home or downsizing out of your now empty nest, is a big decision. You’ll want the best professionals to help you. Ask your real estate agent to put you in touch with a lender who will help evaluate your financial situation and customize the best options for you.
June Griffiths is a Managing Broker in the Windermere Issaquah office and has worked in real estate since 1989.
Properly preparing your home for sale is one of the best ways to make a favorable impression that will help it sell more quickly and for the best price. We can help you stage your home but there are a lot of things you can do yourself, both before and during showings, to improve its appeal. For instance, when preparing your home for sale, think about why you fell in love with your home in the first place, and what you still love about it. Did the entryway feel particularly welcoming? Do you love the flow of the living spaces? Perhaps it’s how the sunlight pours into the kitchen? Enhancing and highlighting these details can help evoke the same feeling for prospective buyers.
Here are more quick tips:
- Turn on all interior lights, even during the day, and exterior lights at night.
- Make the temperature comfortable—approximately 68 degrees.
- Keep pets in a separate area, and change litter boxes daily.
- Put money and other valuables away and out of sight.
- Keep curtains, drapes and shades open.
- Open all doors inside the home, except closets.
- A buyer will likely spend more time previewing your home if you’re not there.
- If you can’t leave the home, try to stay out of the way, and keep children quiet and out of the way.
- Don’t precede or follow potential buyers through your home.
- Let the sales associate show and sell your home